Return maximised through clever repositioning: 5 Short Street, Newmarket, Auckland

Return maximised through clever repositioning: 5 Short Street, Newmarket, Auckland

5 Short Street, Newmarket, Auckland was purchased in 2004 for $8.8m and has moved from strength to strength under PMG.

Occupying a good location in Newmarket, it has retail on the ground floor, seven floors of offices above, totalling 4,200sqm, and 35 car parks.

The Strategy:

The building had become dated so PMG embarked on a plan to fully refurbish it in conjunction with a leasing programme.

  • The first stage was a refurbishment of the ground floor lobby to provide a modern, well-lit, attractive entrance incorporating a new lift area and modern signage. It was interesting to hear how much of a `lift` it gave the existing tenants.
  • Full refurbishment for a key tenant resulting in a new nine-year lease being signed.
  • Floor-by-floor refurbishment.
  • Refurbishment and provision of separate bathroom facilities on each level, as well as shower facilities which were asked for by several tenants.

Return maximised through clever repositioning: 5 Short Street, Newmarket, Auckland

The Bottom line

  Before After
Occupancy 80% 100%
Number of Tenants 6 21
Rent per SQM $200 $250
Valuation $8.8m $14.2m